Taxis are a vital form of transport for many older and vulnerable people (Image: BBC / PA, Chris Furlong)
Older people will face greater isolation and loneliness if Rachel Reeves hikes VAT on taxis, campaigners have warned. The Chancellor is under pressure to rule out increasing taxes on minicab journeys before she delivers her autumn Budget.
Charity Re-engage UK has warned that higher fares would make it harder for older people to “live with dignity and independence”. Private hire vehicle journeys could be hit with 20% VAT in the wake of a legal ruling. Campaigners warn it could lead to an exodus of drivers.
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Re-engage has put the spotlight on the impact on older citizens, warning they often rely on these taxis to “visit loved ones, access essential services, attend social gatherings, and get to critical medical appointments”.
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The charity pointed to the plight of Pat Sparke, a 90-year-old from Essex.
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“Taxis are a lifeline for me,” the pensioner said. “I live in an area with no public transport so rely on taxis for my independence.
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“I simply can’t afford a big hike in prices. It will leave me cut off and isolated, making it harder – if not impossible – to see my friends and family and get to important appointments.”
Polling for the Stop the Taxi Tax campaign found 75% of those over 65 opposed the VAT hike, as did 71% of all Britons.
Three-quarters of Britons were also worried it would make it harder for elderly or vulnerable friends and family to get to medical appointments.
Jenny Willott, the chief executive of Re-engage UK, said: “Many older people face mobility challenges or live in isolated areas with limited or irregular public transport. They already find it difficult to get to the increasingly vanishing number of community spaces to socialise, and to important appointments.
“Taxing their travel will only add to the problem, making it unaffordable for older people to stay connected, access support, and live with dignity and independence. We must ensure barriers such as making travel even more expensive do not result in older people becoming even more isolated.”
A spokesperson for the Stop the Taxi Tax campaign, said: “The taxi tax breaches Labour’s manifesto promise not to raise VAT. Not only that, it will hit the most vulnerable people in society hardest, including elderly people for whom taxis are an essential service.
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“Making the numbers add up on a Treasury spreadsheet cannot come at the cost of increasing social isolation and making life harder for elderly people.”
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A Treasury spokesperson said: “We are committed to help our pensioners live their lives with dignity and respect, which is why in April the basic and new state pension increased by 4.1%. Pensioners will receive a boost of up to ￡470 to their income in 2025-26.
“Our commitment to the triple lock means millions will see their pension rise by up to ￡1,900 this parliament. We take this issue very seriously and recognise its complexity. We are reviewing the feedback from our recent consultation and will publish our detailed response shortly.”